Bank Locker – New Rules

In September, the Reserve Bank of India (RBI) issued revised guidelines on safe deposit locker and safe custody article facilities provided by banks. . “The revised instructions will come into force with effect from 1 January 2022 (except where otherwise specified) and be applicable to both new and existing safe deposit lockers and the safe custody of articles facility with the banks.

1) The RBI has allowed banks to take a Term Deposit, at the time of allotment of a locker. This would cover three years’ rent and the charges for breaking open the locker in case of such eventuality.

2) Banks, however, should not insist on such Term Deposits from the existing locker holders or those who have a satisfactory operative account, it said.

3) The banks will have the discretion to break open any locker following due procedure if the rent has not been paid by the customer for three years in a row.

4) Banks should maintain a branch-wise list of vacant lockers as well as a wait-list in the core banking system.

5) The central bank said the banks should acknowledge the receipt of all applications for allotment of the locker and provide a waitlist number to the customers if the lockers are not available for allotment.

6)Banks have been instructed to put in place a board-approved policy outlining the responsibility owed by them for any loss or damage to the contents of the lockers due to their negligence.

7) “The bank shall not be liable for any damage and/or loss of contents of locker arising from natural calamities or Acts of God like earthquake, floods, lightning, and thunderstorm, or any act that is attributable to the sole fault or negligence of the customer,” it said.

8) The liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse or fraud by bank employees.

The current rent charged by Public Sector Banks ₹2,000 as annual rent for a small safe deposit locker and ₹4,000 for a medium-sized one in urban and metro areas. The annual rent for a large locker is ₹8,000 plus GST.

Happy Investing!

R♥Vi